A common stock just paid a dividend of $5 per share. The dividend is expected to grow
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Question:
A common stock just paid a dividend of $5 per share. The dividend is expected to grow each year at 6% over the next 20 years, at 4 % beyond year 20 until year 40, and at 2% in perpetuity beyond year 40.
What would be the stock intrinsic value today if the discount rate were 12%?
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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